Benjamin Mitchell presents ideas using Chris Argyris thinking on double-loop learning. “Double-loop learning occurs when error is detected and corrected in ways that involve the modification of an organization’s underlying norms, policies and objectives.”

Single loop learning is basically to just try again using the same understanding, thinking and tactics. It is understood that the results were not what was desired so we will try again, but the supporting system is not seen as the reason results were not the desired results. Double loop learning is when the result leads to questioning the system and attempting to adjust the system and make changes and experiment to learn to be able to create systems that get better results.

Argyris: people will blame others and the system when their actions seem to differ from their espoused proper actions. (I see this as similar to the idea of revealed preference versus stated preference: revealed actions versus stated actions – John)

I have long said that the measure of management improvement isn’t only about improving. It is the speed at which the management system and internal processes are being improved. Improvement is a given. If an organization is not improving every year the odds of long term success is low.

One of the common objections to a need for improvement is that we are doing fine and we are improving (so leave us alone we are already improving). That is better than not doing fine and not improving but it isn’t a reason to be complacent. Managers should be continually pushing the improvement acceleration higher.

The biggest problems I see with a focus on being faster are attempting move faster than the capability of the organization and falling back on working harder as a method to achieve the faster action. Really these are the same issue – working harder is just a tactic to cope with attempting to achieve better results than the system is capable of.

Agile software development has a principle, sustainable development, which is a reaction to the far too common attitude of management to just have software developers work longer and longer hours to meet targets. Any attempt to be faster internally or respond to a faster marketplace should first put the principle of sustainable workload as a requirement. And next build the capability of the enterprise to respond quickly and keep increasing how quickly it can respond effectively.

The well know management improvement concepts, practices and tools will lead an organization to improve that capability reliably, sustainable and continuously.

My new book, Management Matters: Building Enterprise Capability, delves into how to manage an enterprise based on the ideas needed to apply management improvement concepts, practices and tools to achieve results, including, but not limited to, faster.

There are many critical elements to a management system. One that is fundamental, yet still poorly executed far too often, is creating a system where all staff can focus on enhancing value to the customer every day.

If your enterprise does not focus on this, it should. If you think your enterprise does, my first, second and third suggestions are to think more critically about whether it really does. If the answer is yes, then you are lucky to work in such an organization.

Saying that customers are valued is easy. Actually designing systems to focus on providing value and continually improving to provide value more effectively is not. It really shouldn’t be obvious to a customer in 5 minutes of interacting with your organization that it is obvious customers are not very important.

It is very difficult to create a system with customer focus by all staff without several basic supports in place. Respect for people needs to be practiced – not just mentioned. If there isn’t time to work on improvements to the system, often meaning you have the equivalent of sickness management instead of a “health care system” that is a shame. The reality of most organizations seems to be to make it very annoying for customers to even bring an issue they are having to the attention of the organization and even then the gaol is to use the absolute least amount of effort for the band-aid that can be tolerated.

Staff have to be given authority to act in the interest of customers. But this can lead to chaos if a good system isn’t in place to steer this process. And without processes in place to capture (systemically) needed improvements there will be huge waste.

My plan is to continue working on the book for the next few months and have it “release ready” by October, 2012. One of the advantages of this method is that I can incorporate ideas based on feedback from the early readers of the book.

There are several other interesting aspects to publishing in this way. Leanpub allows a suggested retail price, and a minimum price. So I can set a suggested price and a minimum price and the purchaser gets to decide what price to pay (they can even pay over suggested retail price – which does happen). The leanpub model provides nearly all the revenue to the author (unlike traditional models) – the author gets 90% of the price paid, less 50 cents per book (so $8.50 of a $10 purchase).

They provide the book in pdf, mobi (Kindle) and epub (iPad, Nook, etc.) formats. And the books do not have any Digital Rights Management (DRM) entanglements.

Management Matters covers topics familiar to those who have been reading this blog for years. It is an attempt to put in one place the overall management system that is most valuable (which as you know, based on the blog, is largely based upon Dr. Deming’s ideas – which means lean manufacturing are widely covered too).

I hope the book is now in a state where those who are interested would find it useful, but it is in what I consider draft format. I still have much editing to do and content to add.

Leanpub also provides a sample book (where a portion of the content can be downloaded to decide if you want to buy). If you are interested please give it a try and let me know your thoughts.

What we can learn from Russell L. Ackoff by Aleksis Tulonen – “If you want to (dis)solve the problem you need to understand how (dis)solving the problem will affect the system and what the problem really is. Gathering the mental constructs of several people with different mindsets will gain you more understanding of what you are dealing with.”

Why smart managers do stupid things by John Stepper – “What You See Is All There Is. Over and over, he demonstrates how people systematically disregard basic probability and other facts in order to (quickly and easily) make up a story that fits with the things they see.”

Downtime Antipatterns for SaaS owners, ZipCar edition – “Use an automated system to point DNS entries to a ‘sorry, we’re down, please see http://status.zipcar.com’ page running on a commodity VPS in a completely different datacenter. Provide useful information to the customer RIGHT AWAY, and don’t leave them wondering why the page isn’t loading.”

Espoused Vs. In-Use by Anthony DaSilva – “From over 10,000 empirical cases collected over decades of study, Mr. Argyris has discovered that most people (at all levels in an org) espouse Model II guidance while their daily theory in-use is driven by Model I.”

Customer Focus is at the core of a well managed company. Sadly many companies fail to serve their customers well. To serve customers, a thorough understanding of what problem you solve for customers is needed. The decisions at many companies, unfortunately, are far removed from this understanding.

It is hard to imagine, as you are forced to wind your way through the processes many companies squeeze you through that they have paid any attention to what it is like to be a customer of their processes. When you see companies that have put some effort into customer focus it is startling how refreshing it is (which is a sad statement for how poorly many companies are doing).

If the decision makers in a company are not experiencing the company’s products and services as a customer would that is a big weakness. You need to correct that or put a great amount of energy into overcoming that problems.

Another critical area of customer focus is to know how your customers use your products. It isn’t enough to know how you want your products to be used. Or to know the problems you intended people to use your products for. You need to know how people are actually using them. You need to know what they love, what they expect, what they hate, and what they wish for. This knowledge can help offset experiencing the products and services yourselves (in some cases getting that experience can be quite difficult – in which case you need to put extra effort into learning the actual experience of your customers).

You cannot rely on what people tell you in surveys. You need to have a deep understanding of customers use of the products. Innovation springs from this deep understanding and your expertise in the practice of delivering services and building products.

One of my favorite improvement tips is to: ask customers what 1 thing could we do better. It is very simple and gives you an easy way to capture what customers really care about. You shouldn’t rely only on this, but it is an extremely powerful tactic to use to aid continual improvement (with customer focus).

How I hire writers by Hitesh Sarda – “We spend a quick 10-15 min assessing if the candidate deserves our time and next interview round or not. My favourite questions include: spelling of conscientious, explain oxford comma… Once I am convinced of their hold on words, we move to round 3… Here we take a deep dive into the writers command over the intricacy of the language. Sample questions: Question on lexical roots of some words. More spellings and grammar questions….”

Without work standards there can be no kaizens by Tracey Richardson – “When was at Toyota those actions were things like – Go See, Respect for people, Continuous Improvement, Teamwork, and Challenge, these were values that could be translated into an action a leader could show from top management down to a team member level, this creates the consistency for the values and principles to become the belief system for the organization that its more than just words on the wall in the lobby.”

Innovation at Bell Labs by Michael McKinney – “Humans all suffered from a terrible habit of shoving new ideas into old paradigms. ‘Everyone faces the future with their eyes firmly on the past and they don’t see what’s going to happen next,’ observed John Pierce.”

As a manager your primary responsibility is to improve the system: both the systems within your sphere of control and those outside of it. The more effectively you do so, the less firefighting you have to do. The less firefighting the less hectic and chaotic your days are. And the more time you have to focus on improving the system.

The better you are at leveraging your efforts, the greater your impact, and more quickly your job gets easier. Most effective leveraging involves improving the system. Improvement to the system continue to deliver benefits continuously.

A specific form improving the system is coaching people so they are able to be more effective at improving the system themselves. One valuable role you can play is to help avoid the existing traps that prevent improvements. Early in a transformation to a continual improvement culture there are significant barriers to improvements. Those not only prevent the system from improving rapidly they can easily derail the motivation people have to improve. It is hard to maintain a desire to improve if every effort to do so feels like a long slog through quicksand.

As you create a system where people have the knowledge, drive and freedom to improve you get to enjoy continual improvement without any direct action by you. As this happens you are able to spend more time thinking and learning and less time reacting. That time allows you to find key leverage points to continue the progress on improving the management system.

Standardized Confusion by Art Smalley – “Changing of a work standard was done very infrequently and normally an engineering activity for the types of items I just described. Maybe we wanted to improve the life of a tool, or alter how the part was clamped in response to a problem on the shop floor, etc. Problems or kaizen sometimes drove us to reconsider work standards but by and large these did not and should not change very often if we planned and launched the process correctly.”

Deming’s Speech at Mount Hakone, Japan (1950) – “The first step, therefore, belongs with management. First, your company technicians and your factories must know that you have a fervor for advancing product quality and uniformity and a sense of responsibility for product quality.
Nothing will come of this if you only speak about it. Action is important…
At first do it on a small scale, and once you think that has value, then expand.”

How we reduced our cancellation rate by 87.5% by Kareem Mayan – “Since implementing changes 1-3 two months ago, we’ve seen our cancellation rate drop from 40% to 5% – an 87.5% decrease. We’re going to run another cohort analysis in a couple months to isolate the impact of each change as it’s still too early to know the long-term impact of these changes”

Design of Experiments: “Fractionating” and “Folding” a DOE by Bruno Scibilia – “In science and in business, we need to perform experiments to identify the factors that have a significant effect. The objective of DOE is to reduce experimental costs—the number of tests—as much as possible while studying as many factors as possible to identify the important ones.”

The opening paragraph of the Quality Council’s perspective is, “For some organizations, ‘quality’ remains a set of tools and techniques associated almost exclusively with quality control. For others, quality has evolved into a critical partner, closely linked with business model development and the enterprise-wide execution of long-term strategy to achieve results.

What is needed to move beyond quality tools into a new management system is to make changes to the system that allow for that management system to be continually improved. Using the tools helps improve product quality a great deal. Much more can be done (both for product quality and overall effectiveness) if we don’t limit the use of modern improvement efforts to the manufacturing line.

At first it is often difficult to get managers and executives to accept the kind of change to their work that they will direct others to make. But once the process of improving the management system gets started, it takes a life of its own and is a very strong force to move beyond product quality.

Here are some previous posts on methods and strategies to move forward the organization into adopting a customer focused systemic effort to continuously improve every aspect of the organization – including the management system:

How Kanban visualisations and conversations enable process improvement by Benjamin Mitchell – “Reviewing the board at the daily stand up meeting provided visual feedback that lead to productive conversations about what might be stopping us and how we could improve. After we implemented new behaviours the board highlighted whether we improved and allowed us to continue to monitor our behaviour.”

Why Cheap Customers Cost More by Sacha Greif – “So it’s not that cheap people require more support. It’s that people who require more support are more likely to make their decision based on price alone.”

Would you like to improve your organization’s relationship with your physicians? “It’s about all those things that motivate people that don’t have anything to do with money – the intrinsic motivators. Everybody wants to feel like they’re part of something that matters, something bigger than themselves. And with our mission of transforming health care and putting patients at the top – that’s huge.”

There are many issues involved, but the biggest is that the leaders in government are normally not interested in having the government perform better. They have political agendas that they are more concerned with, performance just doesn’t matter (or in some cases they even want bad results because their political view is government is bad and therefore anything that makes it look good should be avoided). So they turn the focus of the government to achieving the political aims they have and starve government organizations of talent and money that are not focused exclusively on their agenda.

This doesn’t have to be the case. If politicians cared about the results of their policies, not just the political points related to their agenda it would make sense to support better management strategies. By and large their actions indicate they are not really interested in the results.

How to do Hansei by Jon Miller – “There is a fundamental cultural difference between cultures, regions and within organization when it comes to facing up to faults and failures, accepting responsibility, and learning. The capacity to reflect may be what separate homo sapiens from animals, successful organizations from those less so.”

Toyota Way Principle #3: “Pull” Systems by Chad Walters – “The purpose of the pull system (also called “kanban” system) is to have a measured queue of materials (raw materials, work-in-process, components, whatever) ready to be ‘pulled’ by the next process step. After the materials are ‘pulled’ a signal is sent to the preceding process step to replace what was taken.”

Blaming Deming, Lean, and Six Sigma and the Importance of “Why?” by Kevin Meyer – However both lean and six sigma are phenomenally powerful – if used properly. And at the core of using them properly is to first ask “why?” What is the problem or opportunity, why is it important, what is the desired future state, and what is the most appropriate tool to leverage?… Not asking that simple question is the difference between companies that successfully leverage Deming’s methods, lean, and six sigma…

Lean Snake Oil Cures What Ails Ya – Mike Wroblewski takes some creative license to explain Lean and it benefits but warns against secrets to implementation as Lean takes hard work and personal commitment.

Matt May is hosting the 165th Management Improvement Carnival. He takes a look at the wonderful manifestos posted at ChangeThis. ChangeThis really is wonderful, if you haven’t already been looking at what they offer you are in for a treat (and have quite a bit to keep you busy for awhile). Highlights from this management carnival edition include:

How Habits Work (and How They Change) by Charles Duhigg. His point: “Most of the choices we make each day may feel like the products of well-considered decision making, but they’re not. They’re habits. Countless people, from Aristotle to Oprah, have tried to understand why habits exist…”

Changing the Way We Change by Eric Haseltine. He writes: “As a senior executive in fields as diverse as Aerospace, Entertainment and Intelligence, I’ve learned a hard lesson about people and organizations everywhere: they seldom learn from previous failures. To make matters worse, most people not only repeat past mistakes, but fail to learn that they’ve failed to learn from the past so they go on making the same mistakes over and over again.”

Grow by Jim Stengel. This manifesto is based on his book Grow. “It’s time to change the narrative of business,” Jim writes. “From a winner-take-all tale, no-holds-barred, no matter what the cost to individual firms, investors, the economy, and society, to doing business on the basis of what I call brand ideals, shared ideals of improving people’s lives. Maximum business growth and high ideals are not incompatible. They’re inseparable.”

In addition to great ideas the ChangeThis manifestos actually look great. Sadly so much of what you find is distracting to read due to the presentation. ChangeThis puts you in the mood to enjoy the manifesto as soon as you see it.

What Could we do Better? – There are many important ideas to improve management. This is one of the most important tips to aid improvement that I know of: it is easy to do, brings huge benefits and most organizations fail to do it. Ask your customers: “What one thing could we do to improve?”

Common Cause Variation – “Every system has variation. Common cause variation is the variation due to the current system. Dr. Deming increased his estimate of variation due to the system (common cause variation) to 97% (earlier in his life he cited figures as low as 80%). Special cause variation is that due to some special (not part of the system) cause.”

Sub-Optimize by Interrupting Knowledge Workers – “The general consensus is that the loss from interrupting [software] developers is much greater than for interrupting most other forms of work and therefor a great deal of effort is placed on improving the system to allow developers to focus.”

Amazon Innovation – “I believe Amazon uses technology very well. They have done many innovative things. They have been less successful at turning their technology into big profits. But I continue to believe they have a good shot at doing so going forward (and their core business is doing very well I think).” [Amazon announced great sales numbers today, continuing their long term tread. They are also continuing to be very slow to grow profits (CEO, Jeff Bezos remains willing to challenge common practices – such as his willingness to build business and sacrifice current profits)].

Stress Solutions, Not Blame by Kevin Meyer – “My organization often hears me say that 90% of problems are the result of poor processes, not people, and 9%… are probably due to poor leadership.”

The Real Leadership Lessons of Steve Jobs by Walter Isaacson – “Caring deeply about what customers want is much different from continually asking them what they want; it requires intuition and instinct about desires that have not yet formed.”

Kanban and Lean Startup: Making the Most of Both by Alexei Zheglov – “Kanban is an important process-improvement tool for technology organizations. Lean startup is a new approach to discovering new, innovative ways to do business. To get the most from both, it is important to understand how they relate to each other.”

Is Agile too inefficient for start-ups? by Jason Yip – “You Ain’t Gonna Need It was about creating a culture of simplicity (you must justify building more than you need to), which tends to preserve cash, versus a culture of anticipation (you must justify why you’re not building something that handles every imaginable scenario), which tends to burn cash as if it magically falls from the heavens.”

I am a big fan of Dr. Deming’s ideas on management. The way I see one of the quotes of Dr. Deming used I don’t agree with. Dr. Deming said “How could they know?” to explain why people continued to follow less successful practices (for example, page 55 of Out of the Crisis). How could they know of better practices, he would say.

I must say I have always thought the answer to that question was pretty easy. They could learn about the job they were paid to do. It is a shame that many organizations do a very poor job of preparing or coaching those they promote into management for their new position. However, I don’t see that as an excuse to fail to learn yourself.

Yes, there are also plenty of management books filled with nonsense. That does make it a bit more difficult. But I still don’t have much sympathy for hearing, “how could they know” as a reason for continuing performance appraisals or failing to understand variation or falling to know that “motivating” through monetary rewards backfires or… If you wish to manage human systems I don’t think it is too much to expect you to know about how to do so, and have the knowledge to distinguish nonsense from well reasoned thoughts.

If you want to take on a management job you should take your responsibility seriously. Choosing not to take advantage of the wealth of great material in the past 70 years on how to manage more effectively is not a decent excuse. How could they know? They could take responsibility to learn. If they chose not to do so that is their choice. They chose not to know. I guess some can see that as an acceptable excuse. I don’t.

If they are trying to apply ideas and having trouble: I have sympathy for that. Applying ideas on management is not easy. Human systems are complex and there are no simple guides that tell what is needed in your specific situation and organization. but ignorance of basic management principles, with no evidence of concerted efforts to learn I don’t have sympathy for.

I seem to expect more from managers than most people I talk with. Most seem to find it a perfectly acceptable excuse that a manager never bothered to learn about management. I don’t really understand that. Dr. Deming did seem to hold senior executives accountable for failing their organizations, but he was more accepting of manager’s ignorance than I am.